Nvidia announced a significant quarterly write-down of approximately $5.5 billion related to the export of its H20 chip to China following U.S. government export restrictions. These measures indicate potential growth challenges for Nvidia, as the company previously enjoyed robust sales in China. The U.S. asserts that the chips could be utilized in military supercomputers, heightening security concerns. Nvidia's CEO highlighted a sharp decline in sales from China and increasing competition, particularly from Huawei, posing further risks to its growth trajectory as the firm navigates tightening regulations.
On April 9, the American government informed Nvidia that it needs a license to export H20 chips to China and a few other countries.
This announcement is the strongest signal yet that Nvidia's exceptional growth may be slowed by stricter export restrictions on its chips.
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